Controller Metrics – Page 3

Operating expenses (OPEX) are the costs a business incurs through normal operations that are not directly tied to producing goods or services. Per QuickBooks, OPEX represents the Expenses section on the Profit & Loss statement, excluding cost of goods sold (COGS) and other expenses. Common examples include sales and marketing costs, administrative salaries, and research and development expenditures.

Out of Cash Date is the projected point in time when a company's cash reserves will reach zero, calculated by dividing current cash by monthly net burn rate. Expressed as months of runway remaining, it is a critical planning metric for CEOs and CFOs managing companies that are not yet cash flow positive.

Payment Dispute Rate is the percentage of total successful payments that result in a dispute within the same period. Disputed payments, also called chargebacks, are initiated by the cardholder's bank and typically carry a processing fee for the merchant.

Payouts are the funds a payment processing platform transfers to your bank account after collecting customer payments on your behalf. The deposited amount reflects gross sales minus processor fees, refunds, and chargebacks, delivered on a schedule you configure.

The Quick Ratio measures the ability of your organization to meet any short-term financial obligations with assets that can be quickly converted into cash. It considers the ability for Current Assets, less inventory, to cover Current Liabilities.

Refunded Charges is the total value of payments returned to customers within a defined period. It measures how much revenue you are reversing and helps identify product, service, or fulfilment issues driving refund volume.

Return on Investment is a profitability metric that shows how much net gain an investment produced relative to its cost. It is expressed as a percentage. ROI is calculated by dividing net profit by the total cost of the investment, then multiplying by 100. A positive ROI means the investment generated profit above its cost. A negative ROI means the investment lost money. Teams use ROI to compare options, justify spending, and decide where to direct budget.

Revenue is the total income generated from a company's primary business operations before deducting any costs or expenses. Often called the "top line" because it appears at the top of the income statement, revenue represents the gross amount earned from core business activities such as product sales, service fees, subscriptions, or licensing agreements.

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.